Stats on COVID-19’s impact on business registrations

Summary

Fewer companies were registered with ASIC in the first six months of 2020 compared to the first six months of 2019.
In the same period, the number of newly registered business names increased.
Advice and support are available for companies and small business owners.

During the first six months of 2020 and during the COVID-19 pandemic, company and business name registrations have varied compared to 2019. ASIC has seen a change to the number of companies entering external administration and voluntarily deregistering.

New company registrations

In the first six months of 2019, 113,205 new companies were registered, compared to a slight decrease to 110,246 in the first six months of 2020.

2019 - 113205, 2020 - 110246, decrease of 2.7%

New company registrations were up 7% in January and February but were down from March to May, with the largest drop being 20% in April and the lowest monthly volume since January 2013. Volumes recovered in June, being 8% higher than June 2019.

New company registrations	Jan	Feb	Mar	Apr	May	Jun
2019	14,605	17,404	19,087	16,625	20,682	24,802
2020	15,064	18,711	18,357	13,358	17,752	26,804
Change	+3%	+8%	-4%	-20%	-14%	+8%

Business names

In the first six months of 2019, 186,492 new business names were registered compared to an increase to 205,401 in the first six months of 2020.

2019 - 186492, 2020 - 205401, increase of 10.1%

New business name registrations were down 4% for the January to March period. However, volumes grew quickly with significant increases in April, May and June 2020 compared to the same period in 2019.

Business name registrations	Jan	Feb	Mar	Apr	May	Jun
2019	30,462	32,294	32,625	28,262	32,737	30,112
2020	29,225	32,276	29,797	31,249	39,766	43,088
Change	-4.1%	-0.1%	-8.7%	10.6%	21.5%	43%

External administration

In the first six months of 2019, 3,912 companies entered external administration, a higher figure than the 2,932 companies entering external administration in the first six months of 2020.

2019 - 3912, 2020 - 2932, decrease of 25%

Companies entering external administration for the first time increased 6% in February, but from March has continued to decrease by larger rates, with June dropping 51%.

External administration	Jan	Feb	Mar	Apr	May	Jun
2019	470	629	718	615	772	708
2020	397	667	683	410	429	346*
Change	-16%	6%	-5%	-33%	-44%	-51%*

*Figures are provisional and subject to revision given time lag in lodgements of appointment by registered liquidators.

Voluntary deregistration

Similarly, in the first six months of 2019, 47,434 companies lodged to voluntarily deregister, compared to a decreased value of 41,656 in the first six months of 2020.

2019 - 47434, 2020 - 41656, decrease of 12.2%

Beginning in February, each month saw decreases with the largest in May (23%).

Applications to deregister	Jan	Feb	Mar	Apr	May	Jun
2019	6,118	7,213	8,070	7,341	9,010	9,682
2020	5,964	6,587	7,003	6,477	6,962	8,663
Change	-3%	-9%	-13%	-12%	-23%	-11%

More information

Advice and support are available if your company or small business has been affected by a downturn in business due to COVID-19. Visit the pages below for more information.

Boilerplate

ASIC is Australia’s corporate, markets and financial services regulator.